IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

GrainCorp (GNC AU): Hard to Say No to LTAP

GrainCorp (GNC AU): Pressure Mounts, Diminishing the Prospects of a Bump to the LTAP Bid

GrainCorp: Demerger Underpins the Share Price but a Second-Best Option

GrainCorp (GNC AU): Better Late than Never Move to Get an LTAP Binding Proposal

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p>On Monday night, Long Term Asset Partners (LTAP) abandoned its proposed acquisition of <a href="https://www.smartkarma.com/entities/18531" target="_blank" data-smartkarma-citation="entities:18531:1">Graincorp Ltd A (GNC AU)</a>. As a reminder on 3 December 2018, GrainCorp revealed that it received a non-binding indicative offer approach from LTAP for A$10.42 cash per share. </p><div class="content-highlight"><p>While GrainCorp's proposed demerger is supportive of the current share price, it will complete at the end of the year. There is a paucity of short-term catalysts to offset the current negative sentiment perpetuated by LTAP walking away and the weakening trading conditions in the Grains business. Consequently, we do not see any reason to rush in to buy the shares on any short-term share price weakness.</p></div>

On Monday night, Long Term Asset Partners (LTAP) abandoned its proposed acquisition of Graincorp Ltd A (GNC AU). As a reminder on 3 December 2018, GrainCorp revealed that it received a non-binding indicative offer approach from LTAP for A$10.42 cash per share. While GrainCorp's proposed demerger is supportive of the current share price, it will complete at the end of the year. There is a paucity of short-term catalysts to offset the current negative sentiment perpetuated by LTAP walking away and the weakening trading conditions in the Grains business. Consequently, we do not see any reason to rush in to buy the shares on any short-term share price weakness.

Graincorp Ltd A

GrainCorp: LTAP Pulls the Plug